7. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)("The subparts to be solved.") a. Record the LIFO adjustment.
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.
| Date | Transactions | Units | Unit Cost | Total Cost | ||||||||||||
| March | 1 | Beginning inventory | 20 | $ | 175 | $ | 3,500 | |||||||||
| March | 5 | Sale ($250 each) | 15 | |||||||||||||
| March | 9 | Purchase | 10 | 195 | 1,950 | |||||||||||
| March | 17 | Sale ($300 each) | 8 | |||||||||||||
| March | 22 | Purchase | 10 | 205 | 2,050 | |||||||||||
| March | 27 | Sale ($325 each) | 12 | |||||||||||||
| March | 30 | Purchase | 8 | 225 | 1,800 | |||||||||||
| $ | 9,300 | |||||||||||||||
For the specific identification method, the March 5 sale consists of bikes from the beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from the beginning inventory and eight bikes from the March 22 purchase.
Required:
7. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No
a. Record the LIFO adjustment.
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